BUSI 721
Jones Graduate School of Business
Rice University
Kerry Back
But the gain or loss from gambling is average gain per gamble \(\times\) number of gambles.
Based on history, the bet is definitely in our favor.
Play for a long time \(\Rightarrow\) almost certainly come out ahead.
But how far ahead is quite uncertain.
mean 35.43
std 35.21
min 1.27
10% 7.73
25% 12.98
50% 25.15
75% 45.91
90% 72.67
max 278.76
dtype: float64
Uncertainty about long-run returns \(\Rightarrow\) uncertainty about retirement plans.